In Latin America

Electronic payments in Latin America are showing extraordinary growth driven in large part by the modernization of financial infrastructures, the expansion of credit to less affluent segments of the population, and improvements in risk management capabilities. At the same time, greater regulatory intervention (e.g., interchange) and the increased presence of new entrants in the industry are having a dramatic impact on investment and profitability.

Since our inception, First Annapolis has been helping its clients succeed in a dynamic, highly competitive global payments market. Our approach combines practical recommendations that address both tactical “quick hit” opportunities and longer term strategic investments with creative thinking that challenges industry paradigms. More importantly, we provide our clients with business strategies and solutions that create lasting value and a positive financial impact.

First Annapolis has provided consultancy and financial advisory support to credit card issuers, acquirers, card associations, retailers, processors and other payment providers in a range of markets across Latin America, including Mexico, Brazil, Colombia, Peru, Chile, Dominican Republic, among others. Our consulting teams balance industry expertise and international experience with local market considerations to deliver solutions that are relevant within each client’s market and competitive context.

Recent Engagements

• Portfolio Management: Advised a large Peruvian issuer on strategies and tactics that best position the bank to compete effectively against new market entrants and existing competitors with a focus on account acquisition and balance retention strategies.
• Risk Management: Performed an assessment of credit risk practices at a Mexican card issuer that covered topics such as account prospecting, underwriting, and collections.
• Collections Operations: Conducted a collections and cross-sell diagnostic for a leading issuer in the Dominican Republic.
• Portfolio Strategy: Designed an initial credit line assignment and credit line management strategy for a major Brazilian credit card issuer.
• Segmentation: Developed a portfolio segmentation strategy for a major Colombian credit card issuer.
• Partnership Finance: Assisted a U.S. retailer with various aspects of its financial services market entry strategy in Mexico, including evaluating various program structure options for its credit card program.
• M&A: Assisted in the negotiations of a joint venture agreement between a Mexican acquirer and an international processor.
• Strategy Development: Designed a strategy for penetrating small merchant acceptance markets in Latin America for a major regional acquirer.
• Strategic Planning: Facilitated a marketing and sales planning session for a leading Colombian credit bureau to identify and explore new bureau-related product solutions and risk management services.
• Industry Pricing: Analyzed and provided recommendations regarding the Mexican interchange structure to leading Mexican banks.
• Regional Studies: Conducted a study of new account acquisition best practices in Colombia, Brazil and Peru for a major card network.